CAG data indicates Andhra Pradesh’s worsened fiscal stress: Jagan 

Former Chief Minister Y.S. Jagan Mohan Reddy commented through a message on X that the Andhra Pradesh Government’s fiscal stress worsened in the first quarter of FY 2025- 26 as per the monthly key indicators released by the Comptroller & Auditor General of India (CAG). 

He stated that the figures suggest a precarious outlook for the financial stability of the Government of AP, which has been adversely impacted by the bifurcation of the unified State of AP, and that public finance management was a challenging task for it. 

Only the right quantum of government expenditure in necessary areas of welfare and development can trigger private consumption and investment, thereby promoting a virtuous cycle, he observed. 

Mr. Jagan Mohan Reddy alleged that the State’s revenues from different categories demonstrated dismal growth on a year-on-year (YoY) basis due to rampant corruption. 

Besides, he said growth was subdued among all the categories of revenues, which resulted in a bleak scenario both in the State government’s own tax and non-tax revenues during the first quarter of FY 2025-26.

“It is quite apparent that the economic buoyancy of the State is lost, as evident from the abysmally low growth across some categories of State Government revenues and negative growth in others”, he noted. 

Further, Mr. Jagan Mohan Reddy said he GST and sales tax revenues were lower during Q-1 of 2025 – 26 when compared with the corresponding period last year, the YoY growth during which period, was already subdued.

On a YoY basis, during the first quarter of 2025 – 26, the State’s own revenues have grown by only 3.47% and revenue receipts as a whole, which include receipts from the Central Government, grew at just 6.14%. 

The debt increased at an alarming pace of 15.61%, in Q-1 alone. Reliance on sources other than the State government’s own revenues for meeting the government expenditure is evident from that, Mr. Jagan Mohan Reddy added.